Target Price $38.00CIBC world markets upgrades pou:
"Effective Aug. 5, we are upgrading POU to Sector Outperformer from Sector
Performer and our target price to $38 (from $22), which now includes
$11/share of value for POU's oilsands. As POU advances its oilsands
projects, we expect greater value to be ascribed to this resource.
.
We believe the Bakken in North Dakota is emerging as POU's next major
growth play, adding to what is already an incredibly deep long-term asset
inventory. The Bakken in North Dakota remains one of industry's most
attractive light oil plays, given the high API and massive resource potential.
.
As we have highlighted previously, POU offers the best 'hidden value'
exposure to the oilsands. We believe there is still only $4/share of value in
POU's share price for oilsands, when the true market value (today) of its
assets could reach as high as $18/share.
.
Overall, POU's Q2/05 results were in-line with expectations. We maintain
our 2005 production estimate of 26,721 boe/d; however, we have increased
our 2006 estimate to 27,200 boe/d from 26,000 boe/d following a more
detailed review of the company's 2006 prospect inventory.
Stock Price Performance "